Contrasting HeartWare International (HTWR) and Smith & Nephew SNATS (SNN)

HeartWare International (NASDAQ: HTWR) and Smith & Nephew SNATS (NYSE:SNN) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for HeartWare International and Smith & Nephew SNATS, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HeartWare International 0 0 0 0 N/A
Smith & Nephew SNATS 0 4 2 0 2.33

Profitability

This table compares HeartWare International and Smith & Nephew SNATS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HeartWare International -15.84% -25.32% -10.14%
Smith & Nephew SNATS N/A N/A N/A

Institutional and Insider Ownership

6.4% of Smith & Nephew SNATS shares are held by institutional investors. 1.0% of Smith & Nephew SNATS shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Smith & Nephew SNATS pays an annual dividend of $0.61 per share and has a dividend yield of 1.7%. HeartWare International does not pay a dividend. HeartWare International has raised its dividend for 4 consecutive years.

Valuation & Earnings

This table compares HeartWare International and Smith & Nephew SNATS’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HeartWare International N/A N/A N/A ($3.40) -17.05
Smith & Nephew SNATS $4.68 billion 3.37 $1.32 billion N/A N/A

Smith & Nephew SNATS has higher revenue and earnings than HeartWare International.

Risk & Volatility

HeartWare International has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Smith & Nephew SNATS has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Summary

Smith & Nephew SNATS beats HeartWare International on 9 of the 10 factors compared between the two stocks.

HeartWare International Company Profile

Heartware International, Inc. is a medical device company. The Company develops and manufactures miniaturized implantable heart pumps or ventricular assist devices to treat patients suffering from advanced heart failure. The Company operates in the segment of design and manufacture of medical devices. The HeartWare Ventricular Assist System (HVAD System), which includes a ventricular assist device (VAD) or blood pump, patient accessories and surgical tools, provides circulatory support for patients in the advanced stage of heart failure. The HVAD System is designed to be implanted adjacent to the heart, avoiding abdominal surgery. The HVAD System features the centrifugal pump designed to be implanted in the chest, directly adjacent to the heart. It develops MVAD System, a miniaturized device. The CircuLite Surgical System is designed to be implanted through a right, mini-thoracotomy procedure and does not require a sternotomy or cardiopulmonary bypass.

Smith & Nephew SNATS Company Profile

Smith & Nephew plc is a medical technology company. The Company is engaged in developing, manufacturing, marketing and selling medical devices and services. Its products and services include Sports Medicine Joint Repair, Arthroscopic Enabling Technologies (AET), Trauma & Extremities, Other Surgical Businesses, Knee Implants, Hip Implants, Advanced Wound Care, Advanced Wound Bioactives and Advanced Wound Devices. The Sports Medicine Joint Repair franchise offers surgeons a range of instruments, technologies and implants necessary to perform minimally invasive surgery of the joints, including the repair of soft tissue injuries and degenerative conditions of the knee, hip and shoulder. The AET franchise offers an array of minimally invasive surgery-enabling systems and devices. The Trauma & Extremities franchise supports healthcare professionals with solutions used by surgeons to stabilize severe fractures, correct bone deformities, treat arthritis and heal soft tissue complications.

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